Swift Community Hospital, a 310 bed facility, is a sole provider hospital in a rural New England area servicing a large market. Recently, a wealthy philanthropist made a major contribution to the hospital’s long-term investment fund. Assess Swift’s profitability, liquidity, activity, and capital structure ratios. Use a sheet for key financial ratios formula  exhibit 4.16a on page 186 in Financial Management of Healthcare Organizations 4^th ed Zelman, McCue, Glick & Thomas.

Note:The answer is needed not information for a book.

Ratio	20X1	20X0
Liquidity ratios
Current ratio	3.12	1.95
Quick ratio	2.12	1.45
Acid test ratio	0.89	0.25
Days in accounts receivable	46	58
Days cash on hand	148	48
Average payment period, days	50	56
Profitability ratios
Non-operating revenue	0.02	0.01
Return on total assets	0.35	0.05
Return on net assets	0.15	0.04
Activity ratios
Total asset turnover ratio	0.80	0.90
Fixed asset turnover ratio	1.90	2.10
Age of plant	12.92	11.04
Capital structure ratios
Long-term debt to net assets	0.25	0.60
Net assets to total assets	0.65	0.35
Debt service coverage ratio	3.50	2.25

Answer rating: 100% (QA)

Liquidity ratio expresses a companys ability to repay shortterm creditors out of its total cash It i... View the full answer